Linda and Raj are engaged to be married.Linda's 2017 taxable income as a single individual would be $83,500.Raj's 2017 taxable income as a single individual would be $118,000.When they marry before the end of 2017,how much of a marriage penalty will they incur?

Question

Quizplus · Accepted Answer

The marriage penalty occurs when the combined income of a married couple puts them into a higher tax bracket than they would be in if they were unmarried. In this case, Linda and Raj's combined income would be $201,500, which would put them in the 33% tax bracket. If they were unmarried, Linda would be in the 28% tax bracket and Raj would be in the 33% tax bracket. The difference between those two brackets is $669, which is the amount of the marriage penalty they would incur. Therefore, the correct answer is C.

Linda and Raj Are Engaged to Be Married